Expert: Peter Messaline - 11/2/2007

Question
Hey Peter, hope you can help me....I'm a Canadian model living in London (non-permanent) and I've just recently shot a campaign in Milan. My agency in Milan needs a form from the Canadian government proving that I pay my taxes in Canada, therefore enabling me to not have to pay Italian tax on what I earned in Milan. Does that make sense?  I need this form to avoid double taxation....but the question is what is this tax form called? I've searched the Canada Revenue website, and found what might be it but I'm still not sure.....and my agency is not being very helpful as they don't know what it is either. If you can help I would greatly appreciate it, as I've got other shoots coming up in other european countries as well.
Thank you!

Erik

Answer
There is a paragraph in the Canada/Italy Tax Convention against Double Taxation that shows that you will not be paying tax in Italy:
Article XIV
Independent Personal Services

1. Income derived by a resident of a Contracting State in respect of professional services or other independent activities of a similar character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other Contracting State but only so much of it as is attributable to that fixed base.

2. The term “professional services” includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.

Since you have a Canadian Passport,that should be sufficient
So your problem is proving you are a Canadian Resident.
Also be aware that you should not be paying for social benefits since you will be paying COP when you file your Canadian return.

But I am not an international tax lawyer. Call the closest Canadian consulate and ask them what to do. This will not be the first time they have been asked!

The only thing that's worse than being out of work is working!

Have you told your provincial health care that you intend to return home? Most have a limited allowable time of non-residence in the province, after which you aren't covered until you have been resident again for, usually, three months. Tell them when you left what you are doing and when you plan to return. You can write again and extend the time.
Mille bacci